Commercial Real Estate in Delhi NCR - A Booming Market
    Article05th Jan 2022
    3 minute read

    Commercial Real Estate in Delhi NCR - A Booming Market

    A very common question that I come across every day for a lot of investors is "Why should I invest in Delhi NCR, why not Mumbai or any other states?" The prime reasons why Delhi has an upcoming and ever growing CRE sector is because firstly it is the capital of our country, which means there's always scope for development taking place.


    1. DMIC Corridor-

    The government or even large corporates are investing heavy sums of money to make it even better – The government has started off the DMIC (Delhi Mumbai Industrial Corridor) corridor which will be connecting Delhi to Mumbai in less than 15 hours. Another example is of Meta, the parent company for Facebook, Instagram, WhatsApp, etc. has built an all-new office space in Gurgaon which is yet again a major part of Delhi NCR. Gurgaon is also known as the millennium City with so many top notch MNC’s and large corporates having their offices situated here.


    2. The IT sector -

    IT sector is the backbone of any industry and NCR is the hub for huge IT companies such as TCS, Cisco, Google, Meta, etc. Companies look at opportunities in Gurgaon or Noida to secure office spaces as the rentals compared to their currency aren’t too expensive and thus very affordable but at the same time the rentals for the owner of the properties are a lot thus resulting in great return opportunities from their investments in such commercial properties. These huge companies help the builders or developers achieve their ROI quicker since the prices are ever high.


    3. Airports and Connectivity-

    With one of the biggest airports in India the IGIA and with the upcoming Jewar Airport in Noida, property value is bound to shoot up. Investment in opportunities near the airport in Noida is going to be all about waiting for your returns until the completion of the project. The prices of Commercial Real Estate projects will increase multifold as connectivity will get better as compared to today. Companies will acquire more space where connectivity is good. Due to the under-development project of the airport the Noida CRE market is yet to experience major inflation leading to high returns in the coming years. Many companies plan on relocating to this location.


    4. Premium projects-

    The developers in Delhi NCR are some of the most premium and top notch in the country and even the world. Big names such as Emaar, DLF, M3M are few examples. The construction quality is top notch with grade A building, amazing architecture by big names such as Hafeez Contractor. The accumulation of 3 to 4 prime developers in an area has led to price competition thus giving investors a good opportunity to enter the market and invest in best of the best projects of these developers. The prices and rental are very competitive.


    5. The availability of skilled labor -
    From top notch institutions such as IIT’s has attracted companies even miss to settle in Delhi to secure the best talent pool for the growth of their organization. NCR being the prime hub for the IT sector and IIT being a major supplier of knowledge pool to these huge companies with their talented human capital. A lot of students from such institutions don't always join an organization but also start their own ventures which turn into huge startups with time. Taking an example of Flipkart who also happen to have warehouses here in Gurgaon and offices in Noida.


    These are a few reasons why Delhi NCR is a booming CRE market, which seems to be a rather promising venture by the day.


    1.Which city is the best opportunity to invest in from the NCR Market?

    The answer to this question depends on what the investor expects – High Rental Yield, Scope for appreciation, Safe but low returns. Gurgaon and Noida are good markets for appreciation as they are still expanding. Delhi is a high rental market with less scope for appreciation as it has already developed a lot over the years.

    2.What is the minimum budget one should have to invest in NCR?

    An individual can start investing with just 18 Lacs through Propreturns.

    3.Can a Commercial Property be bought jointly in Delhi NCR?

    Yes, Commercial properties can be bought jointly.

    4.What is the interest rate for loans on commercial property in Delhi?

    Anywhere from 7% to 9% depending from bank to bank.

    5.Can we find options which are less than 50 Lacs?

    The answer to that question is Yes. In the CRE market of Delhi NCR, one can invest in a smaller unit of a larger floor plate thus reducing the financial burden by a huge amount.

    Harshvardhan Sharan
    Investment Associate